Lenders deposit funds into Moonwell and receive interest payments from borrowers (supply-side fees).

Moonwell is a non-custodial lending protocol built on multiple blockchains.

WELL tokenholders own and govern the protocol. They currently take a cut of the total interest + liquidation fees paid by borrowers (revenue).

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Moonwell

# Moonwell Total value locked Methodology

## 1. Overview

Moonwell TVL (Total Value Locked) measures the total USD value of assets deposited into Moonwell lending markets plus the total value of outstanding loans. This comprehensive TVL metric answers the question "What is the total economic value at risk in the Moonwell protocol?" by combining both the supply side (user deposits) and demand side (active borrowing) of the lending protocol. The calculation tracks token flows into and out of lending markets, maintains running balances, and adds outstanding loan amounts to create a complete picture of protocol utilization.

## 2. Data sources

- **ERC20 token transfer events**: Parsed `Transfer` events from Base and Optimism blockchains tracking all ERC20 token movements to and from Moonwell lending market contracts
- **Compound fork protocol events**: `CToken_AccrueInterest` events from Base and Optimism that contain updated total borrow amounts for each lending market
- **Protocol configuration data**: Moonwell market definitions that map market contract addresses to their underlying token addresses and provide market metadata
- **Token metadata**: Token contract information including symbols, decimals, and standardized identifiers for decimal correction
- **End-of-day price feeds**: Daily token price data used for USD conversion of all token amounts

## 3. Step-by-step calculation

### Component A: Net deposit tracking
- **Purpose**: Calculate the cumulative net deposits (TVL) for each token in each Moonwell lending market
- **Logic**: Monitor all ERC20 `Transfer` events where the recipient (`to_address`) or sender (`from_address`) is a Moonwell lending market contract address on Base and Optimism chains. Transfers TO market contracts are treated as deposits with positive amounts, while transfers FROM market contracts are treated as withdrawals with negative amounts. Aggregate these transfer amounts daily by token and market, then apply a cumulative sum using a window function partitioned by token, market, and chain to maintain running balances. Filter out any negative cumulative balances as these represent cToken transfers rather than underlying asset deposits.
- **Key fields**: `block_timestamp` for daily aggregation, `token_address` for asset identification, `account_address` for market identification, `amount` for transfer value (positive for deposits, negative for withdrawals)

### Component B: Active loans tracking  
- **Purpose**: Calculate the total outstanding loan amounts across all Moonwell lending markets
- **Logic**: Extract `CToken_AccrueInterest` events from Base and Optimism Compound fork contracts, filtering only for events from known Moonwell market addresses. These events contain the `total_borrows` field which represents the current total borrowed amount for that market. Take the daily average of `total_borrows` values for each market to handle multiple events per day, then aggregate across all markets by token type to get total outstanding loans per token per day.
- **Key fields**: `block_timestamp` for daily aggregation, `account_address` for market identification, `total_borrows` for outstanding loan amounts

### Final aggregation
- **Combining components**: Union the net deposit amounts (TVL component) with the active loans amounts, both structured with identical schemas including timestamp, chain, and token fields
- **Currency conversion**: Apply decimal correction based on token metadata to normalize all amounts to standard decimal places, then convert to USD using end-of-day token price feeds via the conversion macro
- **Time aggregation**: Aggregate amounts by day using timestamp truncation, with forward-filling applied to ensure continuous daily time series without gaps
- **Final calculation**: Sum the TVL component (net cumulative deposits) and active loans component for each day, chain, and token combination. The result represents the total value locked in Moonwell including both user-supplied assets and outstanding borrowing activity, providing a comprehensive measure of protocol economic activity and risk exposure.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

MoonwellWELL

Total value locked

Total value locked

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